Laboratory Corporation of America
) (NYSE: LH) today announced results for the quarter ended September 30, 2013.
Third Quarter Results
Net earnings were $148.3 million and earnings per diluted share (EPS) were $1.63 in the third quarter of 2013. Non-GAAP earnings per diluted share, excluding amortization, restructuring and other special charges recorded in the third quarter of 2013 and 2012 (Adjusted EPS Excluding Amortization) were $1.80 and $1.76, respectively.
Revenues for the quarter were $1,462.2 million, an increase of 3.0% over the third quarter of 2012. Testing volume, measured by requisitions, increased 5.1% and revenue per requisition decreased 1.9%. Revenue per requisition decreased year over year due largely to previously-discussed government payment reductions, payment issues related to molecular pathology codes and strong growth in the Company’s toxicology business.
Operating income for the quarter was $244.6 million. Non-GAAP operating income excluding restructuring and other special charges recorded in the quarter (Adjusted Operating Income) was $248.3 million, or 17.0% of revenue. Margins were negatively affected by the factors noted above.
Operating cash flow for the quarter was $234.2 million, compared to $203.8 million in 2012. The balance of cash at the end of the quarter was $174.1 million, and there were $372.0 million of borrowings outstanding under the Company’s $1 billion revolving credit facility. During the quarter, the Company repurchased $288.0 million of stock, representing 2.9 million shares. As of September 30, 2013, $304.1 million of repurchase authorization remained under the Company’s previously approved share repurchase plan.
The Company announced that its Board authorized an additional $1 billion share repurchase program. This authorization clearly demonstrates the Company’s continued commitment to return capital to and create value for shareholders.
The Company recorded restructuring and other special charges of $3.7 million during the third quarter of 2013.
During the third quarter of 2013, the Company received cash proceeds of $7.5 million and recorded a net gain of $5.5 million on the sale of an investment. The investment was one of several strategic investments the Company has made in the area of diagnostic technology.